Categories: Business Plans

Google Splits Into Different Companies Under One Umbrella Company Alphabet

Google has become perhaps one of the most recognized brand name and company in the entire world. Yesterday the company announced a big restructuring that saw Google split into different companies under one umbrella group of companies christened, Alphabet.

The move by the tech giant has been argued as a way to better manage the company with more flexibility. By breaking Google as we previously knew it into a number of smaller companies under Alphabet. The company (now Alphabet) hopes for better management of each division with a specialized leadership.

Larry Page and his co-founder Sergey Brin are now the new CEO and President of Alphabet respectively. Sundar Pichai is the new CEO of Google a division of Alphabet that is now specialized in search engine services, Android OS, and Chrome Internet browser. Different specialized CEOs will lead the various Alphabet’s divisions.

The work of Larry and Sergey as the CEO and President of Alphabet will be in service to all the other CEOs of the various divisions of Alphabet, who will be positioned to be strong independent leaders. However, the two will be in charge of capital allocation and ensure that the different divisions are well managed. They will also be in charge of appointing a capable CEO for the various divisions and ensure they are well compensated.

Sundar Pichai, the former Product Chief at Google, and the current CEO of Google branch was highly recommended by Page who used the following words to describe him:

I feel very fortunate to have someone as talented as he is to run the slightly slimmed down Google, and this frees up time for me to continue to scale our aspirations. I have been spending quite a bit of time with Sundar, helping him and the company in any way I can, and I will, of course, continue to do that.”

Google as previously constituted was working on many different projects and at times

completely unrelated. From a self-driving car, unmanned aircraft, Internet access provision around the world, artificial neural network, modular phone, a system weather balloons, search engine services, mobile operating system, and Internet browser among others.

The breaking of these different units into different companies headed by specialized CEOs is under the umbrella group, Alphabet. The move is seen as a more autonomous and efficient way to run the business. To read more on this, head on to Page’s blog post.

Felix Omondi

Kenyan citizen with a passion for writing for as long as I can remember. In my spare time, I like to blog and read up on trends that's happening around the world.

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